Modern Mining July 2021

IRON ORE

the end of 2021 and its results will be considered in Tsodilo’s Preliminary Economic Assessment (PEA). Project in detail Preliminary work on the project has defined a CIM compliant Inferred Mineral Resource Estimate of 441‑Mt. Block 1 is a fraction of the potential XIF magnetite resource and further exploration will be focused on Block 2 where the company expects an increase in the resource. “We think Block 1, which is only a 5 – 6 km strike, is just the tip of the iceberg. The rest of the deposit has a 40 km strike length and is the real deal, as it has a potential exploration tar‑ get tonnage of 5 to 7-billion t,” says Jeffcoate. The company has thus far spent over US$25‑million on the project, drilling over 556 holes, representing over 80 000 m of drilling. The company has also done ground geophysical magnetic surveys (22 749 line km), as well as airborne electromagnetic (16 933 line km) and airborne gravity surveys (10 392 line km). The company is now moving into its next phase of exploration and is targeting a significant increase in the mineral resource by drilling out the Block 2 area which is split into Block 2a and Block 2b. Significant tonnages of material are expected from these areas based on Tsodilo’s exploration target. The company anticipates a NI 43-101 MRE report following explora‑ tion at both Block 2a and Block 2b. The exploration priority is targeting high grade MBA like material, which is the higher grade material over 25% Fe and in Block 1 averaged 35,6% Fe. Preliminary Economic Assessment The above business cases and stages will be assed fully in the company’s upcoming detailed Preliminary Economic Assessment (PEA) options study that will define all economic and engineering parameters as well as a roadmap for the development of the XIF asset. The PEA will evaluate a number of options for development of the project at a variety of scales including:

business development activities – thereby increas‑ ing cargo for ports and corridors linked to it, and to engage in the facilitation of corridor and infrastruc‑ ture development. Of specific importance to Tsodilo is the Walvis Bay-Ndola-Lumumbashi Development Corridor (WBNLDC) which connects Namibia, Zambia and the Democratic Republic of Congo (DRC), with links to Angola, Zimbabwe, Malawi and Tanzania. WBNLDC provides the shortest route between the Namibian west coast Ports of Lüderitz and Walvis Bay and the vital transport hubs of Livingstone, Lusaka and Ndola in Zambia, Lubumbashi (southern DRC) and Zimbabwe. The corridor is perfectly positioned to service the two-way trade between the SADC region and Europe, North and South America and emerging markets in the East. Currently the portion of the corridor between Grootfontein (Namibia) to Katima Mulilo located on the Zambia border is the portion of the corridor to the XIF, and is currently connected by a grade A bitu‑ men highway used for the transportation of goods and services. However, in March 2021, the Namibian Ministry of Works and Transport commissioned a feasibil‑ ity study for the Trans-Zambezi Railway Extension Grootfontein-Rundu-Katima Mulilo. The feasibility study is one of the project components being imple‑ mented under the Namibian Transport Infrastructure Improvement Project and the consultancy services are being funded by the African Development Bank and the Government of the Republic of Namibia. The Trans-Zambezi Railway Extension line linking Zambia and Namibia is planned to pass through Divundu, providing access to Walvis Bay, Namibia’s deep-sea port. The proposed ra i l ex tens i on between Grootfontein and Katima Mulilo is significant to Tsodilo as it is planned to pass through Divundu in Namibia which is located approximately 35 km from the company’s licence location in northern Botswana. The feasibility study is expected to be completed by

Drilling work at the XIF project.

16  MODERN MINING  July 2021